Q. What is Soft Qualify?
A. SoftQualify reports are available online 24/7, are simple to read and are virtually identical to traditional tri-merge credit reports. They include the exact same FICO score model that is used during the underwriting process.
SoftQualify Advantages
- Provides a significant cost savings over a tri-merge report for pre-qualification purposes.
- Does not impact consumer FICO scores.
- Does not place a hard inquiry on the consumer’s credit report.
- Does not activate competitor trigger leads.
- Provides a cost-effective way to generate more REALTOR referrals.
- The SoftQualify report is not an application and not subject to FACTA disclosures simplifying downstream compliance requirements.
- Powerful tool for attracting first-time home buyers and those currently renting.
Limitations
- Pre-qualification use only—cannot be used for loan underwriting.
- Requires a signed authorization or if handled via phone; a recorded script which must be preserved.
- The consumer cannot be charged for the report, nor can the report be disclosed to the buyer.
- Not eligible for CreditXpert analysis or Score Express rescoring.
Q. What is the difference between a Hard Inquiry and a Soft Inquiry?
A. Hard inquiries occur when a lender pulls your credit report as the result an actual credit application. Hard inquiries can affect credit scores.
Transactions that do not originate from an actual credit application, such as employment screening or pre-approval offers, are ‘soft’ inquiries. Because these transactions are not an actual application for new credit there is no impact on credit scores.
Q. Can a Soft Qualify Pre-Qual be used through the duration of the loan process?
A. Soft Qualify reports are for pre-qualification purposes only and cannot be used for loan underwriting. Soft Qualify reports are ineligible for additional services including Score Express (rescoring), CreditXpert (rescoring tools), and supplemental (manual) updates.
Q. If a traditional credit report is pulled following the Soft Qualify Pre-Qual, am I charged for the new?
A. Yes. These are two separate transactions.
Q. Are the credit scores on a Soft Qualify report guaranteed to be the same on the hard inquiry once the loan process begins?
A. The score received on a Soft Qualify report is the same Fico Scoring model used during the underwriting process. Because the same model is used, files re-pulled within a reasonable time frame should have the same or comparable scores; however, as with any file re-pull positive or negative changes are possible if there is a change to reported account information.
Q. Do I need a consumer’s permission to pull a Soft Qualify report?
A: Yes, consumer consent is required. Consent can be obtained via a traditional signed paper authorization, online through a digital process, or verbally if the phone call is recorded.
Q. Is the consumer’s social security number required to pull Soft Qualify reports?
A. Yes. The same consumer information required to pull a traditional report is required to pull Soft Qualify reports.
Q: Can I share the credit report and score with the consumer?
A: No. Repository rules prohibit sharing soft pre-qualification report data with the consumer.
Q. Does Credit Technologies provide automatic mailing services (FACTA) to consumers with Soft Qualify reports?
A. No. On hard inquiry credit reports procured for the processing of a residential mortgage application; Credit Technologies produces and issues to the consumer(s) the FACTA required Consumer Score Disclosure and Notice to Home Loan applicant. Neither of which apply on soft pulls used solely for prequalification purposes.
Q. Am I required to print and mail FACTA required notices to the consumer when I pull a Soft Qualify pre-qualification report?
A. It is our understanding based on other lender comments and practices that an adverse action notice may not be required based solely on the use of a soft prequalification report. This is subject to change if additional information is obtained from the consumer(s) and further interaction occurs between the consumer(s) and Mortgage Loan Officer.
*This is not legal advice and was not written or reviewed by an attorney. You should consult qualified legal and/or compliance personnel competent in your jurisdiction prior to making any decision.
Q: Can I order SoftQualify reports through our loan origination software?
A: Yes, but most don’t. Virtually every LOS charges an additional transaction fee (typically $1.00-$2.00) when ordering products. As the soft pre-qualification report cannot be used in the lending/underwriting process, there’s little reason to incur the additional fee. It’s simpler and more economical to order SoftQualify reports online directly through Credit Technologies.
Q: Are SoftQualify reports available through Preflight or BestQualify?
A: No. SoftQualify reports are not available for underwriting or lender GSE/AUS use. Preflight and BestQualify can be utilized after a prospective borrower is identified through the use of a SoftQualify report to further automate the lending process and reduce costs.
Q. Can I automatically access Soft Qualify Pre Quals through my existing account?
A. Because Soft Qualify files are for Pre-Qualification use, an agreement separate from your existing agreement with Credit Technologies is required. To begin you may call us at 1.800.445.4922 or via email at SalesSupport@CreditTechnologies.com. We’ll walk you through the process and determine the options that deliver maximum cost savings and lead generation opportunities.
Q: What are the costs involved?
A: Costs are a small fraction of a tri-merge report but vary somewhat based on your specific needs. Your sales professional can provide you specific options and associated costs.
Q: How long does it take to get set up?
A: Each account requires repository approval so time can vary a bit. Generally, it takes about 7 business days from the time we receive your completed application (or addendum for existing Credit Technologies clients).
Q: Can I use your services from a home or virtual office?
A: Perhaps. The repositories require a third-party inspection to be completed prior to allowing access. If you have the required security requirements in place, it’s possible that you may be able to obtain access. Contact us for more information.
Q: Are there required scripts and processes that I must use when utilizing SoftQualify to prequalify potential borrowers?
A: Yes. The required scripts and processes are included with your addendum.
Q: Can I use my own processes and scripts?
A: The processes and scripts we have in place are already approved and vetted by the bureaus. If you choose to use your own process, it will need to be approved before you can move forward.